We are specialist AIM managers and have been successfully investing in companies listed in the Alternative Investment Market (AIM) since we launched the service in 2006. Over that period, we have witnessed varying market environments which we have successfully navigated as evidenced by our long-term track record. Our performance has been consistently ahead of the majority of our peers - as verified independently quarterly by Asset Risk Consultants.
The AIM market features a wide range of participants from venture capital backed start-ups to mature smaller businesses, well established in their industry sector. Our portfolios are designed to capture those companies that are expected to qualify for Business Relief.
However, as a sub-market of the main London Stock Exchange, AIM operates within a lighter regulatory framework. This means that, although it offers meaningful potential for capital returns and possible tax advantages, it is higher risk due to the volatility and less liquid characteristics of smaller companies (making it more difficult to sell). This is particularly true over shorter term periods.
For that reason, we construct portfolios that are well diversified across different commercial and geographical sectors, which we research carefully to identify those that we feel have a strong trading record and justifiable prospects for sustainable profit growth.
View From Our Investment Team
“When constructing our AIM portfolios we take a balanced approach, seeking to achieve effective diversification and exposures to defensive areas of the market, as well as higher growth sectors. Thorough due diligence is conducted on each individual security to identify suitable investments with a strong investment case. The result of this is a portfolio designed to withstand volatile market conditions and prosper during periods of market growth in order to protect an investor’s capital throughout the cycle as best we can.”
For investors with a higher risk appetite who are comfortable investing in this small company marketplace, it can offer an opportunity for capital growth over the long term. It may also offer suitable individuals the opportunity to benefit from the current favourable tax breaks on AIM investments that qualify for Business Relief. If HMRC approve the qualifying status of these investments held by the Executors, then there may be a potential reduction in Inheritance Tax (IHT) liability (depending on each individual’s personal tax position).
Your investment manager will guide you through the components, risks and conditions attaching to AIM investments. They will also look at their suitability to your personal circumstances, risk parameters and your investment aims and objectives.
However, we do not provide tax advice. Therefore, we would always recommend that you consult your tax adviser or financial planner as to the benefits of, and need for, AIM investing as part of your overall financial planning.
We have been successfully investing in companies listed in the Alternative Investment Market (AIM) since we launched the service in 2006. The AIM market features a wide range of participants from venture capital backed start-ups to mature smaller businesses, well established in their industry sector.
The portfolios we construct are well diversified across different commercial and geographical sectors, which we research carefully to identify those that we feel have a strong trading record and justifiable prospects for sustainable profit growth.
For investors with a higher risk appetite and/or capacity for loss who understand the risks associated with investing in smaller companies, AIM investments may offer the potential for long term capital growth. This service may be suitable as a higher risk component of a broader diversified investment portfolio.
In addition, for clients whose estate planning objectives include mitigating a potential Inheritance Tax (IHT) liability, qualifying AIM investments may benefit from Business Relief, which can provide favourable IHT treatment where the relevant legislative conditions are met. Tax treatment depends on individual circumstances and may be subject to change in the future.
If you have clients seeking long-term capital growth opportunities whether as part of wider inheritance tax planning or as an investment solution in its own right, our AIM Portfolio Service could play a valuable role in your financial planning. We welcome the opportunity to discuss the service in more detail and explore its suitability for your clients. Please contact our Investment Team to arrange a meeting or request further information at investments@csmanagers.com
For further information on our AIM Portfolio Service please visit our Literature Library or click on the links below.
Latest Quarterly Performance Update
AIM Presentation - For Investment Professionals Only
Case Study
Our clients were an elderly married couple who anticipated a sizeable inheritance tax bill unless they took action. Their portfolios to date had provided the capital growth and the income stream that had allowed them to remain in their own home and maintain a comfortable lifestyle. After further discussions, it was clear that there were more than sufficient funds to cover existing, as well as likely, care costs in the foreseeable future.
It was determined that an appropriate course would be for each to invest a proportion of their capital in a portfolio designed to mitigate the impacts of inheritance tax. The solution recommended was a portfolio of BPR qualifying AIM listed securities which, if held for a minimum of two years up to the date of death, could reduce the couple’s taxable estate
“When constructing our AIM portfolios we take a balanced approach, seeking to achieve effective diversification and exposures to defensive areas of the market, as well as higher growth sectors. Thorough due diligence is conducted on each individual security to identify suitable investments with a strong investment case. The result of this is a portfolio designed to withstand volatile market conditions and prosper during periods of market growth in order to protect an investor’s capital throughout the cycle until the time comes that the estate is passed on.” (Investment Manager at CS)
The portfolio strategy was implemented, achieving capital appreciation over the holding period. On the first death after more than two years, the survivor acquired the whole estate under spousal exemption (including the tax benefit of the portion invested in AIM). Upon her passing, the taxable estate was reduced due to investment in an AIM portfolio.
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